Friday, October 7, 2011

"Stocks: One Sign the Bottom Might Be In" (DIA; QQQ; SPY)

From MarketBeat:

We are habitually, nay pathologically,skeptical of market rallies here at MarketBeat.

But we are trying to become better-rounded individuals,
learning
which forks to use in which portion of the frozen-dinner
tray and
learning not to immediately scoff
when somebody gives us some data that
challenges our
preconceived notions.

Dan Greenhaus of BTIG, who is already a far better-rounded individual
than we are, but also shares some of our notions about the direction
of the market, makes us sit down and eat this bullish nugget like a
plate of peas today...MORE

I had a comment:
[of course you did -ed]

The history of big three-day moves.

Click for ginormous image.

1:39 pm October 7, 2011

Climateer wrote:

One of the richest men I’ve ever known had three questions when someone pitched him a deal:

What’s the upside?
What’s the downside?
What’s the time-frame?
In the instant case the question is:
Were this week’s lows the lowest the indices will ever go?

Or do the bottom callers mean the low is in for this quarter?
If we are ina secular bear market, and after 11 years (since Naz
5048) it’s starting to feel like one, we could see lower lows until
2020.

There are reasons to think this one might be done quicker than the ’66-’82 iteration:

December 31, 1964: DJIA 874.12
December 31, 1981: DJIA 875.00

“Now I’m known as a long-term investor and a patient guy, but that is not my idea of a big move.”
-Warren Buffett